Foreign Direct Investment in South Eastern Europe

Abstract

FDI has been of vital importance to the transition economies. Its importance primarily derives from its contribution to enhancing the growth prospects of the particular economies as well as the process of transformation towards the establishment of a market economy. In contrast to portfolio investment, which is primarily oriented towards short-term profit opportunities, FDI constitutes a long-term commitment which motivates investors to participate actively in the decision-making process contributing, as a result, to enterprise restructuring.